This is my report regarding Law of Demand that I used in my Economy class at De La Salle-College of Saint Benilde

1. OF

2. DEMAND
Is the quantity of a good or service
that consumers are willing and able
to buy at a given time period.

3. LAW OF DEMAND

4. LAW OF DEMAND
The claim that, other things equal,
the quantity demanded of a good
falls when the price of the good rises.

5. DEMAND CURVE

6. DEMAND CURVE
All else being equal,
as the price of a
product increases,
quantity demanded
falls, likewise, as the
price of a product
increases, quantity
demand increases.

7. SHIFTS IN THE DEMAND CURVE

8. SHIFTS IN THE DEMAND CURVE

9. INDIVIDUAL AND MARKET
DEMAND

10. MARKET DEMAND
It is the sum of all
individual
demands for a
particular good or
service.
INDIVIDUAL DEMAND
All of the factors that
determine the
quantity demanded of
an individual for the
particular commodity

11. INDIVIDUAL DEMAND

12. MARKET DEMAND

13. INDIVIDUAL & MARKET DEMAND SCHEDULE
The quantity demanded in a market is the sum
of the quantities demanded by all the buyers.

14. DETERMINANTS

15. PRICE
The quantity demanded falls as the price
rises and rises. As the price falls, we say
that the quantity demanded is negatively
related to the price.
EXAMPLE: If the price of ice cream rose to
$20 per scoop, you would buy less ice
cream.

16. PRICE
When a fall in the price of one good
reduces the demand for another good,
the two goods.
.
A. SUBSTITUTES
EXAMPLE: Ice cream and yogurt; hotdogs
and hamburgers; Sweaters and sweatshirts

17. PRICE
When a fall in the price of one good raises
the demand for another good, the two
goods.
B. COMPLEMENTS
EXAMPLE: Shampoo and conditioner;
Computers and software.

18. INCOME
A rise in a person’s income will lead to
an increase in demand while a fall will
lead to a decrease in demand for
normal goods.

19. INCOME
A good for which, other things equal, an
increase in income leads to an increase in
demand.
A. NORMAL GOOD
EXAMPLE: An increase in income, makes a
consumer more likely to take taxi.

20. INCOME
A good for which, other things equal, an
increase in income leads to a decrease in
demand.
B. INFERIOR GOOD
EXAMPLE: As your income falls, you are less likely to buy a
car or take a cab, and more likely to ride the bus.

21. TASTES
The desire, emotion or preference of
a good or service. When taste rise, so
does the quantity demanded.
EXAMPLE: If you like ice cream, you buy
more of it.

22. EXPECTATIONS
When people expect that the value
of something will rise, then they
demand more of it.
EXAMPLE: If you expect the price of ice cream to
fall tomorrow, you may be less willing to buy an
ice-cream cone at today’s price.

23. NON-PRICE DETERMINANTS
OF DEMAND

24. BRANDING / ADVERTISING
Successful advertising persuades
people to buy one good over
another.
EFFECT: It shifts the demand curve to
the right.

25. BRANDING / ADVERTISING
Negative Advertisements or stories by
the press have the opposite effect
and can cause decrease in demand.
EFFECT: It shifts the demand curve to
the left.

26. SEASON AND THE WEATHER
Demand changes according to the
year of the climate.
EXAMPLE: Umbrellas (Rainy Season)
Ice Cream (Summer)

27. AVAILABILITY OF INCOME
If the amount of available buyer
income changes, it alters their
propensity to purchase.
EXAMPLE: Income rises, demand for good
quality goods rises (normal goods), while
inferior goods decreases.

28. POPULATION
A rising population brings with it a rising
levels of demand.
EXAMPLE: Growing population of young
people. There will be a growing demand for
child health care, education and clothing
due growth if birth rate.

29. DEMOGRAPHICS
A change in the proportions of the population
in different age ranges can alter demand in
favor of those groups increasing in size (and
vice versa).
EXAMPLE: Aging Population. There will be
growing demand for elderly health care,
equipment and medicines.

30. CHANGE IN DEMAND
vs.
CHANGE IN QUANTITY

31. CHANGE IN QUANTITY
• Refers to a change of
quantity demanded as a
result of price change of the
good.
• Results from change in price
(move along curve)
CHANGE IN DEMAND
• Means a change of the whole
purchase plan. It is caused by
the factors other than the
change in the price of the good.
• Results from change in a non-
price determinant of demand
(curve moves)

32. REFERENCES
Bragg, S. (2013, May 7). Non-Price Determinants of Demand. Retrieved May 4, 2016,
from Accounting Tools: http://www.accountingtools.com/questions-and-answers/what-
are-the-non-price-determinants-of-demand.html
Economic Concepts. (n.d.). Retrieved May 5, 2016, from Campus Green :
http://campus.greenmtn.edu/faculty/gregbrown/sc310/sc310nt1.html
Mankiw, G. (n.d.). Principles of Economics.
Non-Price Determinants of Demand. (n.d.). Retrieved May 5, 2016, from Triple A
Learning: http://web.sis.edu.hk/Departments/EcoBus/microeconomics_11/page_19.htm

33. THANK YOU